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Tata Communications Ltd.

BSE: 500483 Sector: Telecom
BSE 10:02 | 16 Aug 1096.50 1.35






NSE 09:49 | 16 Aug 1094.20






OPEN 1104.70
52-Week high 1590.00
52-Week low 856.00
P/E 26.37
Mkt Cap.(Rs cr) 31,250
Buy Price 1096.00
Buy Qty 2.00
Sell Price 1096.50
Sell Qty 29.00
OPEN 1104.70
CLOSE 1095.15
52-Week high 1590.00
52-Week low 856.00
P/E 26.37
Mkt Cap.(Rs cr) 31,250
Buy Price 1096.00
Buy Qty 2.00
Sell Price 1096.50
Sell Qty 29.00

Tata Communications Ltd. (TATACOMM) - Chairman Speech

Company chairman speech

Building a scalable sustainable and secure growth engine


The world is finally opening!

It has been heartening and simply a delight to meet some colleagues and customers.In-person meetings have a charm of their own. Reaffirming our customer relationshipsdriving trust have always proved / beneficial for all.

I also met some of our colleagues in the last few weeks when we returned to officeglobally. I was fortunate to meet some of our teams in different regions. I am energisedto see the signs of a global recovery.

FY 2021-22 has a been a landmark year for Tata Communications! From witnessinggreenshoots of demand recovery we progressed well in achieving our strategic shifts fromproducts to platforms gaining market leadership in our chosen business segments ourfinancial fitness with healthy improvement in free cash flow and reduction in net debtproviding headroom to invest for future growth. While we have laid a strong foundation westill have a lot to do. We are now investing in the right areas and are solely focusing onour growth target.

To drive on this growth trajectory it has been extremely crucial for us to have adeeper understanding of the state of the industry today and the digital transformationjourneys that enterprises are on in order to better serve their emerging needs.

For this we undertook a global survey spanning 11 markets connected with C-Suite of750 companies and shared our findings in the report titled "Leading in aDigital-First World; Enabling Success with the Right Mindset Ecosystem and Trust".An eye-opening survey the Report unearthed that 90% of enterprises are yet to achievetheir digital-first goals. And of these 49% are admitting that cyber security is thetopmost priority for their business. Our analysis in the report highlights thatenterprises can be classified into 3 distinct categories --Digital Trailblazers who havethe highest level of digital adoption in their enterprise Digital Migrants who are stillon their journey and have made substantial digital investments. and Digital Aspirantswho are yet to embark on their digital transformation journey or are at the inceptionstage.

As economies open trust and security are core to the competitiveness and agility ofenterprises seeking growth.

I believe the scale of digitalisation will define and determine the success ofenterprises irrespective of their size or industry. All of them must act now to reap thebenefits of digital transformation by:

• Committing to a digital-first operating model that over time reimagines everycore channel process and service offering to maximise their digital opportunity.

• Creating quality user experiences with a hyperconnected ecosystem to move up thevalue chain developing a digital-first strategy focusing on agility control andsecurity. Delivering high-quality secure and frictionless collaboration for allstakeholders across the entire ecosystem will be critical.

• Competing by innovating and adapting faster than peers keeping security andtrust central to their core. As cyber threats and regulatory demands gain centre stage inthe new world enterprises must continue to win trust businesses must stay vigilant andinvest proactively to safeguard all stakeholders.

We are now actively driving digital- first goals for enterprises while continuing tofocus on providing holistic solutions to accelerate their digital transformation journeys.


We enhanced our portfolio with innovative solutions and platforms.

• Next-Gen Connectivity Services: We launched strengthened variants of theIZO™ Internet WAN for global enterprises offering predictable and dependable networkservices with access to more than 150 geographies.

This brings high-quality Internet services consistent network experiences over variousservice options including broadband

Internet. It now enables seamless data transfer from branch offices to data centresfrom branch offices to clouds and across multiple clouds for enterprises. Enterprises arenow able to have a simple and agile management over their global and regional networks.The new variants of IZO™ Internet WAN caters to all industries such as ManufacturingIT ITeS Services Retail BFSI etc. They have been released for enterprises acrossNorth America Europe United Kingdom Ireland and Asia-Pacific markets. IZO™Internet WAN launched in 2014 is the world's first predictable and dependable internet.

'Bandwidth-on-Demand' on Ethernet services has been introduced to deliver speedconvenience cost efficiency and pay-as-you-go features enabling enterprises to becomeagile and productive.

This helps in delivering flexibility improving end-user experience and bringing costefficiency and self-provision additional capacity on a pay-as-you-go model to meet shortterm bandwidth needs conveniently through a self-service customer portal. We are poweringthese enterprises to move closer to achieving their digital-first ambitions. This is builtupon the strong foundation of Tata Communications data centre ecosystem infrastructureproviding seamless connectivity and maximum coverage across the data centre clusters inIndia with multiple diverse routes.

• Collaboration & Connected Solutions: We introduced Tata CommunicationsGlobalRapide an end-to-end managed unified communications as a service (UCaaS) to enableenterprises deliver digitally advanced sophisticated and intelligent collaborationexperiences to employees. With this new service we have become a one-stop- shop toaddress all digital-first cloud-first unified communications requirements of globalbusinesses. This new offering helps enterprises with identifying the right collaborationplatforms simplified migration robust enterprise-grade communications management andend-to-end visibility monitoring and reporting of the collaboration solutions. Augmentedwith SaaS (Software as a Service) platform- based strategy training and insightscapabilities the service provides businesses with usage analysis of their collaborationtools maximising the service adoption. With this addition

Tata Communications suite of cloud-based secure collaboration solutions now enablesenterprises to unlock the full potential of their digital collaboration strategy withbetter visibility and control of their unified communications infrastructure.

For the world of connected things we shared our viewpoint in the whitepaper titled '5Gthe 5M way'! Envisioning factories of the future in the 5G era we outlined the concept ofthe 5Ms - Man Machine Material Method and Market. This is the next leap for CXOs forwhom digital transformation augments digitisation of the human-machine interfaces. The newage of hyperconnectivity is upon us and we are taking an enterprise-first view with ourMOVE platform which is already enabling multiple use cases for our enterprise customersusing the best-fit-for- use underlying connectivity option to drive efficiencies acrossthe value chain. The 5M framework enables us to give a holistic view to enterpriseshelping them unlock revenue potential with enterprise efficiency and agility whileensuring customer centricity.

• Cloud & Cyber Security Services: We launched IZO Financial Cloud apurpose-built community cloud platform enabling next-gen digital transformationcustomised to meet the stringent data privacy and protection compliance and securityguidelines defined by India's regulators for the Banking Financial Services and Insurance(BFSI) sector. Developed on the Tata Communications IZOTM Private Cloud this new platformhelps in building an open banking ecosystem that offers BFSI and FinTechs the foundationto enable advanced digital services.

It also allows international banks to expand their footprint in India by meeting thecountry's data residency requirements. Cloud offerings have been a major focus for usthroughout the year - driving hyperpersonalisation importance of cloud security forbusinesses etc.

Keeping our customers centre stage you will be happy to know our innovations receivedrecognitions for being a ‘Leader'.

These include:

• Gartner Magic Quadrant for Network Services Global for the ninth consecutiveyear on completeness of vision and ability to execute. As per Gartner "Organisationsadopting flexible networking technologies (such as NOD) and flexible sourcing approaches(such as bring your own [BYO] access) have been much better able to support the rapidaccommodation of new endpoints and new applications (including cloud services and IoT)and have done so while controlling their WAN expenditure."

• For SDWAN Managed Services by Avasant for exhibiting consistent excellenceacross all three key dimensions of the assessment (practice maturity partnershipecosystem investments and innovation) as well as having a superior impact on the marketas a whole. As the Report states

Tata Communications as a ‘Leader' has "shown true creativity and innovationand have established trends and best practices for the industry." A Leader"displays a superior quality of execution and a reliable depth and breadth acrossverticals."

• ISG 2021 SD-WAN Services & SDN Transformation Services Provider Lensstudy-UK for being responsive to customer requirements of aligning network evolution withthe cloud and virtualisation ambitions. As per the study "With diverse servicemodels including co-managed and on-premises management access as a standalone servicealong with capabilities to provide these services on its own network and third-partynetworks the Company enhances value proposition to the customers. This flexibility isoften a differentiator providing Tata Communications an edge over competitors. Itshowcases a deep understanding of the network segment and it is also proficient inrecommending the applications that best suit customers' requirements. Providing supportacross the lifecycle of the evolving network with a virtual lab co-creating proofs ofconcept (PoCs) and assisting them to the pilot stage have been some of the keydifferentiators of Tata Communications".

• Frost Radar's Asia-Pacific Managed SD-WAN Services Market for a comprehensivemanaged SD-WAN offering with a variety of underlay connectivity options multipleservices/cloud gateways access to a strong partner ecosystem and a highly skilled andtrained staff. The Report further states "Tata Communications is helping enterprisesmove toward digital transformation. Its comprehensive portfolio of managed SD-WANsolutions is supporting businesses' rapidly growing requirements as they move to thecloud. To further enhance SD-WAN capabilities and meet evolving customer needs thecompany has been investing in AI/ ML natural language processing network functionproximity services and uCPE."

• GlobalData Wholesale Antifraud's Competitive Landscape Assessment for empoweringpartners via global network and service reach expansions and by adding managed servicessuch as managed security including those suitable for enterprise end user. The Reporthighlights "Tata Communications seeks to enable its wholesale customers by providingvalue-added Ethernet and IP-based services cloud and managed services IoT andspecialist services targeting MNOs as well as the media and broadcast ecosystem. TataCommunications is also making investments internally and externally in innovation IoTand artificial intelligence for use cases including cybersecurity.


Strengthening our presence in the key international markets has been a tremendous focusin FY 2021-22.

All teams doubled down to making a difference to our customers and focused on deeperrelationships.

We also organised ourselves to bring stronger rigour in driving t superior customerexperience with the formation of customer success teams and stronger leadership in theregions. We are now expanding our presence with more resources on the ground targeted andcustomised solutions for our customers.

The story will be incomplete if I didn't mention about the Regional Leadership Councilsthat we set up to ensure we lead from the front ^ to assist with faster decision makingquick resolutions region focused direction and strategy. A think tank for the RegionalLead these have proved to be successful and we are getting good feedback from our teams.We also brought in industry experts to lead some strategic geographies.

Our results have happened purely through the collaborative force of all the globalteams firing at full throttle. Each Region has worked diligently to build a robust plan ona strong foundation. I am confident of the directions defined by each team.

They drive the Company's direction and they are what makes Tata Communications what itis!


Our people are our strength! I am extremely proud of our teams.

They are driving the transformation for the Company from within and for our customerthrough digital transformation. We are a Company in transformation. This offersopportunities for employees to acquire new skills and be a part of the exciting journey.

To help our Leaders stay ahead of the curve from a Company direction perspective thisyear we brought Leading from the Inside Out (LIO) a foundational leadership developmentprogramme created for Tata Communications next generation of business leaders - to supporttheir efforts at building and managing high performing teams inspiring excellence and indoing so stewarding the organisation's future towards new and exciting avenues.

As we continue on our transformation journey we have outlined the next shift towardsbeing more customer- focused and outcome driven. We believe that there are six behaviourswhich will enable us to be a team to Drive Ahead grow further and accomplish more -Ownership and Accountability Collaboration Can do attitude and growth mindset BeingAgile Continuous learning and skills transformation and Innovation and problem solving.These coupled with the Tata group values of integrity responsibility excellencepioneering and unity make for our story of success. It is an absolute pleasure to see howeveryone lives the Tata group values and ethics every day in everything that we do.

We are creating an organisational culture driven by learning and innovation beingintrinsic to our internal ethos. It is an integral part of our everyday work life. Ourfocus is on building digital dexterity at the workplace by ensuring employees understandthe importance of upskilling and how this aligns with the Company's business objectives.We encourage employees to explore learn and create the best digital experiences for ourcustomers. We have an innovation framework that encourages people to innovate withprogrammes like STF Disrupt Innovista and ProjectMarketplace.

The story will be incomplete if I didn't mention about the Regional Leadership Councilsthat we set up to ensure we lead from the front to assist with faster decision makingquick resolutions region focused direction and strategy'*

We aim to grow and develop our employees and their careers by widening their experienceand expertise and conducting a training- need analysis on a regular basis to assesstraining priorities and also hold group discussions to benchmark training programmes.

Inclusive Leadership was introduced as an immersive learning journey to enable peoplemanagers manage a diverse workforce with the help of webinars from world class D&I(Diversity and Inclusion) leaders and customised e-learning modules with assignmentscase studies and online social discussions.

In order to make ours a great place to work we initiated some interesting projects forour employees -- TalentCentral to promote holistic career development including internalcareer mobility and training basis the career path aspiration AI Webinars to name a few.As we were opening our offices we also helped our employees navigate the various phases ofreturn to office and with medical services - testing support vaccination camps a newleave category for Covid recovery DayCare and Creche services etc. We also collaboratedwith Tata Group to help our employees with ambulance services.

The strength and resilience of our employees is truly exemplary. We are humbled withthe support dedication commitment they have demonstrated throughout this period andcontinue to show even today.

We invite and engage people to come and join us in our transformation journey to play asolid role so as to create a digital fabric on which our customers can build secureconnected digital experiences. We see huge opportunities and driving growth is our toppriority. As a result of all our initiatives our employee satisfaction survey highlightsan engagement score of 86% four percentage points higher than last year. Our engagementhas also increased across all regions. This increase in the engagement scores now puts usamong the Global Best Employer benchmarks while continuing to maintain our position in thetop quartile.

Another important pillar of our growth is our focus on sustainability throughout thefabric of the organisation. To embed this further we revised our CSR policy to integrate'environment sustainability' as a new area of our work. Under this we will promote actionon biodiversity climate change energy and water.

We have done this in recognition of the inter-connections between the 'Community' andthe 'Planet' and the community's existence within the planet. Our aim is to createconnected societies to advance the well-being of the people and the planet. And we havenow also defined a set of values to guide and govern our community initiatives actions -well-being regeneration ethics and resilience.

In our effort to build a better world step-by-step we have taken some steps.

• We embarked on distributing smart cookstoves in three regions in rural Indiawith an aim to offset 9945 tonnes of CO2 every year starting from 2023.

• We saved our power consumption globally by approx. 6.2 million kWh in 2021 andare increasing our renewable energy footprint by extending our onsite solar installation(Bengaluru and Hyderabad) and off-site PPA agreements with renewable energy providers.

• We sourced approximately 23 million kWh (13%) of renewable energy globally.

• For afforestation we have started restoring green cover in a wasteland for 500families in 61 villages by planting more than 125000 fruit saplings assuring sustainablelivelihoods to the people in these villages developing a green ecosystem while offsettingcarbon emissions and soil erosion.

• We reduced our fresh-water consumption by 9% by focusing on our 3Rs - ReduceReuse and Recycle - resource management strategy; by using innovative technology andequipment for optimal water usage rainwater harvesting and upgradation of SewageTreatment Plants to name a few.

All these initiatives came about with an intent to build a better world together whiledriving our business.

You will be happy to know that all our efforts for sustainable transformation throughenvironmental and societal initiatives were recognised by the Institute of Directors whoconferred the Golden Peacock Global Award for Sustainability - 2021 to TataCommunications. An honour and a responsibility on our shoulders that we will manageresponsibly.


Our teams have done a stellar performance. We had business wins consistently and insome solutions we even went beyond. •

• Formula 1 has been the highlight of the year with the multi-year strategiccollaboration. We are providing them our global end-to-end managed network services forvideo contribution to transform the motorsports experience.

For this we are facilitating the transfer of more than 100 video feeds and over 250audio channels transmission between the Grand Prix venue and F1's Media & TechnologyCentre in the UK every race weekend. All the transmission is achieved in under 200milliseconds enabling F1 to broadcast to over 500 million fans in 180+ territoriesglobally.

• Continuing with the world of motorsports we are probably one of the fewcompanies to be collaborating with the two of the world's top motorsports organisations -Formula 1 and MotoGP. We further strengthened our relationship with Dorna Sports theexclusive commercial and television rights holder of the FIM MotoGP™ WorldChampionship for an exclusive multi-year strategic collaboration to bring the MotoGP™close racing and incredible competition to nearly half a billion homes worldwide. We aretransforming the viewing experience of its fans worldwide with our media edge servicesensuring excellent video quality and tremendous speed delivering the race live from thetrack to the viewers' screens in just a few tenths of a second.

• Along with Zain KSA we are energising the digital transformation journeys ofenterprises and government organisations in the Kingdom of Saudi Arabia (KSA) toremodeling cities with smart street lighting smart waste management connected workplacehealthcare and connected cars. For the flagship project under this initiative bothorganisations are collaborating to bring smart street lighting solution for one of the keycities in KSA. Our IoT ecosystem will serve as the one-stop-shop to provide the hardwareplatform application and insights and Zain KSA will expand the footprint with itsbusiness-to-business (B2B) offerings through joint projects. All of these will be relatedto software-defined wide area network (SD-WAN) and global contact centres as well as theapplication of smart transport and Internet of Things (IoT) solutions enabling smart wastehandling smart metering and other smart city use cases to name a few.

All of these and much much more business wins are helping enterprises embark on orenhance digital adoption in their transformation journeys. I am extremely proud of ourteam and their accomplishments. It is incredibly inspiring to see the trust we garner fromour customers through the repeated business we are getting from them and the reason thatkeeps us going.

The real success of all the teams' efforts can be further appreciated with thesignificant improvements we have made in our Net Promoter Score? (NPS?) yet again. Weenhanced our position by increasing four more points in FY 2021-22 to be at 84 a topquartile position.

We made great progress this year with a steady performance and highlighting growth inthree consecutive quarters. Our eyes were firmly rooted to executing on the strategy andemerging opportunities.

The fruits of our labour were witnessed in the strong sequential profit for eightconsecutive quarters consistently. This encouraged the Board to recommend a dividend ofH20.70 per share.

This has been a truly fulfilling year wherein we achieved financial fitness andshifted to innovative platforms.

I believe we are now well poised to take our next leap of growth.

As we continue on our transformation journey we will play a solid role as a digitalecosystem enabler to create a digital fabric of customised secure connected digitalexperiences for our customers. We see huge opportunities and driving growth is our toppriority.

We are accelerating digital transformation journeys for enterprises with trust. We areall set to fire up our growth trajectory globally and be scalable sustainable and secure!

We invite and engage people to come and \ join us in our transformation journey to playa solid role so as to create a digital fabric on which our customers can build secureconnected digital experiences.

A. S. Lakshminarayanan
Managing Director and CEO